“The CFPB will be looking to flex its muscles even more next year; they’ve already given very clear signals that they’re going to be a strenuous regulator,” attorney Marc Israel, president of MiT national Land Services, told Mortgage Professional America. “In 2016, I think you’ll see the CFPB take a tough position and come at someone hard.”
It’s a grim prediction, especially for mortgage originators who are just getting used to the recently passed TRID “Know before you owe” disclosure rule, which has resulted in delays for homebuyers and industry players alike.
The CFPB’s days could potentially be numbered due to next year’s presidential election, according to Israel, who argues certain candidates – especially republican hopefuls – would look to either weaken or dissolve the regulator.
“The new president could look to declaw the CFPB,” Israel said.
It’s because of that potential dissolution that the democratic-passed organization may look to have a meaningful impact on the financial services industry sometime in early 2016.
“I’m not sure who they will be targeting; it could be the settlement industry, it could be the mortgage or banking companies, but I do know they are looking in every nook and cranny of the industry,” Israel said. “They could look to make an example of someone.”
The Consumer Financial Protection Bureau may not be done interfering with the mortgage industry, according to one industry professional who is predicting further regulations to come.